How migrant networks are reshaping labour recruitment after Brexit

Guest blog by Isaac Brewer, postgraduate student at LSE studying International Migration and Public Policy, exploring the shifting role of migrant social networks in addressing labour shortages in post-Brexit Britain

Immigrant social networks (particularly of EU-origin) have long helped employers in low-paying labour markets to fill vacancies. Since the post-Brexit immigration system was introduced in 2021, sectors that have previously relied on EU immigrants to fill vacancies have been greatly impacted, exacerbating pre-existing shortage challenges. Yet, the role that UK-based immigrants’ social networks play, post-Brexit, in partially offsetting these shortages (and its wider impacts) has not received much discussion.

My argument is twofold. Firstly, although EU immigrants’ social networks continue to help employers address labour shortages in several low-paid labour markets, this will diminish due to a declining pool of those with post-Brexit settled status (EUSS). Secondly, despite the expected reduced role of EU immigrant social networks in connecting employers to co-nationals, post-Brexit labour market trends suggest it is plausible that non-EU immigrant social networks will play an increasingly prominent role in meeting employers’ staffing needs. 

Employers’ historical reliance on EU immigrants’ networks 

Low-paying sectors, such as manufacturing and hospitality, have frequently recruited through EU-origin social networks. They may adopt specific strategies, such as hiring immigrant consultants who are respected by co-nationals within a local community. For employers, the value of EU immigrants’ social networks is that it has given them quick access to a supply of perceivably reliable workers. Employers value recommendations from their ‘good’ immigrant employees, who tend to connect them to others with similar attributes. This has been previously shown with Latvian immigrants in food processing and hospitality, for example. 

Immigrant employees, to maintain their own reputation, are inclined to ensure that those they recommend remain viewed as ‘good’. Employers benefit because their immigrant employees can socialise new recruits into having certain work expectations and approaches which can serve their flexible business operations. This, in turn, lowers recruitment costs and can help retain workers. Unsurprisingly, employers see little incentives to divert from such hiring practices. 

Still the case post-Brexit?

Although limited, available evidence suggests that EU immigrants’ networks still help employers to address shortages in several low-paying labour markets. Recent evidence from the Migration Advisory Committee found food and clothing manufacturers relying on immigrant networks, especially to fill (lower-paying) occupations such as production operatives. Immigrant employees would recommend individuals through word-of-mouth or social media posts, which connected them to a formalised recruitment process. Some employers also financially rewarded those who provided referrals. Employers, who needed constant flows of workers, especially during seasonal production peaks, could rely on trusted employees to recommend capable individuals. Subsequently, this served to perpetuate reliance on immigrants in some workforces: in one company relying on immigrant networks, 90% of its staff were non-British (mostly from Poland). 

In agriculture and construction, there is further evidence that employers continue to benefit from EU immigrant networks. Regarding the former, 40% of surveyed seasonal workers in Scotland (majority with EUSS) had found their employer through friends or family. 

Such examples show that there remain clear incentives, for both employers and immigrant employees (especially the former), to continue engaging in network hiring practices. 

However, post-Brexit, it is plausible that employer reliance on EU immigrant networks will reduce. This is because the number of immigrants with post-Brexit settled status (EUSS) is decreasing, most likely due to emigration. In agriculture, for example, there is already evidence that this is impacting recruitment. It may also be the case that those with EUSS are also ageing out of the agricultural workforce or are moving to new jobs. For some employers, the impacts do not just relate to reduced labour supply. They also cited concerns that scheme operators had connected them with workers (mostly from countries they had no experience with) who were not providing the same quality compared to that provided by EU social networks under free movement. 

This highlights the longstanding significance of EU immigrant social networks in the sector, not just for propping up workforces but the trust they have gained through supplying reliable workers. However, recent trends, particularly emigration of those with EUSS, are challenging this. 

Increased prominence of non-EU origin social networks

Examining post-Brexit labour market trends, it is probable that we will see greater influence of immigrants’ social networks shift from those of EU-origin to non-EU origin. Now, in several low-paying sectors that historically relied on EU immigrants (such as hospitality, admin and support services, and wholesale, retail and vehicle repair, non-EU workers outnumber EU workers. Certain sectors that have also traditionally recruited mainly non-EU immigrants (social care for example) have also seen increases in their non-EU workforce. Most non-EU immigrants in work will not be on work visas and have mostly arrived as dependants, on family routes, and humanitarian visas. Immigration status is important to consider here: those arriving on these visas are able to take up work in the vast majority of occupations. Of course, being on a non-work visa, this may not be of immediate concern. But such visas also restrict their access to welfare, therefore incentivising them to pursue employment. 

Recommendations or job information from spouses/partners, or other family members already in the UK, may further drive network recruitment of non-EU immigrants on such visas to these sectors.Take social care work for example. Non-EU immigrants, who comprise most foreign-born social care workers, can recommend (and have recommended) partners and spouses to employers. Available data on this is scant but some anecdotal evidence suggests this is happening in social care. Further evidence suggests that a substantial proportion (46%) of non-EU social care workers arrived in the UK as dependants. For those joining main applicants already in the UK on the Health and Care Worker visa, it is probable that some will be connected to the sector through their spouses/partners or family members. 

However, this must not be detached from the increasingly restrictive nature of post-Brexit immigration policies. Recently, it was announced that partners of those with work visas must be able to speak English to a ‘basic’ degree to qualify for a ‘dependant’ visa. Furthermore, alongside care workers, students arriving in the UK can also no longer bring dependants from abroad (except under certain conditions). Such policies will impact network recruitment, by limiting the growth of (largely non-EU) immigrant networks. 

Wider issues 

One of the major implications of the continued use of immigrants’ social networks is that it serves to further embed certain nationalities into low-paid work. This may partially explain why particular EU and non-EU nationalities that were overrepresented in low-skilled, low-paid occupations prior to Brexit continue to be today. So, although immigrants can help those in their social network to secure work, this is likely to further concentrate particular nationalities into low-paid (and often low-status) work, at least in the short-term. In the post-Brexit context, we must therefore consider the effects social networks can have on their members’ labour market integration. This does depend on the network, however, and the information they possess on quality jobs (or lack thereof). 

A further major issue is that employer reliance on immigrant social networks can mean other labour pools are overlooked. Evidence from the Migration Advisory Committee suggests that only some (usually more resourceful) employers that recruit through immigrant networks are seeking to diversify which labour pools they recruit from. Given the falling numbers of individuals with EUSS, some employers will need to take appropriate steps to target alternative labour sources. Local labour market conditions are especially relevant here. Low-paying employers often cite that shortages arise from perceived unattractiveness of their sectors, especially in terms of poor pay, low job status, and long and unsociable working patterns. Further issues impeding the recruitment of local UK workers relates to expensive housing and lacking public transport, especially in rural areas. Strategies such as providing accommodation (in the form of mobile homes) on-site, while favoured by immigrants, does not generally appeal to local UK workers. 

Attracting and retaining local UK workers, therefore, is a challenging endeavour, which cannot be isolated from various interconnecting local factors which impact supply and demand. For some employers, this implies that their reliance on immigrants and their networks will continue.

Looking ahead

Since the post-Brexit immigration system was introduced, there is evidence that employers continue to count on immigrants to fill vacancies in low-paying labour markets. Immigrant networks play a considerable role here in not just providing more workers but helping to meet the quality expectations of employers too. This has benefitted employers in ways that other recruitment options (such as agencies) may not, at least not to the same extent. However, the post-Brexit environment has highlighted that employer reliance on EU immigrant social networks is not sustainable, due to a shrinking number of individuals with EUSS. Although likely to be curtailed by recent immigration policies, non-EU origin social networks can still be expected to play a greater role instead in channelling immigrants (particularly on non-work visas) into low-paying sectors.

The utilisation of UK-based immigrants’ social networks is, of course, not the only way employers have addressed shortages post-Brexit. But given the continued reliance of low-paying sectors on immigrant social networks, it is necessary to recognise their relevance, and wider implications, in the post-Brexit immigration context.